BiggerPockets Real Estate Podcast April 2025 Housing Market Update: Prices to Weaken, Buyers Get Better Bargains
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Apr 18, 2025 Home prices may weaken, offering great deals for those waiting to buy. Inventory is rising, putting sellers in a tough spot as buyers linger. The condo market shows notable weakness, with many sellers needing to accept lower offers. Inflation and stock market uncertainty are affecting demand but it's not another 2008 scenario. There are hints of increasing foreclosures as the market shifts, and buyers need new strategies to navigate this evolving landscape.
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Inventory Rising Towards Buyer’s Market
- Rising inventory signals a shift towards a buyer's market. However, inventory levels remain below pre-pandemic norms, indicating an improving but cautious market balance.
- Days on market have returned to pre-pandemic levels, pointing to more balanced conditions between buyers and sellers.
Demand Holding Despite Economic Fears
- Mortgage purchase applications have increased year over year despite common narratives of declining demand. Lower mortgage rates are likely driving this improvement in affordability.
- This trend suggests that buyer participation is holding steady or improving even amid economic uncertainties.
Condo Market Shows Significant Weakness
- The condo market is showing unusual softness with 68% selling below list price, a higher rate than single-family homes. This trend is accelerating, signaling weakening seller power.
- Declining sale-to-list price ratios suggest growing negotiation leverage for buyers in the condo sector.